Technology Metals Australia Ltd. executed a nonbinding memorandum of understanding with China-based CNMC Ningxia Orient Group Co. Ltd. for vanadium off-take from the company's Gabanintha project in Western Australia.
The vanadium nitrogen alloys and ferrovanadium producer will initially purchase 2,000 tonnes of vanadium pentoxide per year on a take-or-pay basis. The deal is for an initial three years, extendable for another three.
The company said May 22 it will continue ongoing discussions to finalize a definitive and binding off-take agreement over the coming months. The MOU is effective until Oct. 1, extendable by mutual consent.
A pre-feasibility study for Gabanintha in June 2018 estimated annual production of 13,000 tonnes of vanadium oxide during a 13-year mine life. Work is ongoing on a definitive feasibility study for the project, with production scheduled to start in 2021.
CNMC Ningxia is a unit of China Nonferrous Metal Mining (Group) Co. Ltd.